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Courtisy of Contrarian:

After a very strong opening on the reserves upgrade news from 28 to 116 mm barrels by TRACS (180-200p), profit taking has kicked in. After banking a few on the spike, I'm buying back 155-165p.

Why?

1.Core area has a value of around £1 billion, three times market cap, this is without enhanced oil recovery techniques
2. Additional reserves likely to booked outside core area
3. Lots of newsflow to come e.g. WONS well approval, departure of Rowan Norway, well test etc.

Use the dip to your advantage! Ultimately there will be a transfer of wealth from impatient private investors moving money to other hot AIM stocks to institututional investors. At the current market cap of £350 million or so, each of the barrels is valued at £3 ($4.7) compared with Brent Crude at $121. So even with field development and funding risks, Xcite is not overvalued with 116 million in proven audited reserves

Update on Monday, February 20, 2012 at 12:10PM by Contrarian Investor UK
Price fallen to 158p on profit taking and Numis note, reduce from hold, target price 135p (would be interested to read the note given its so out of kilter with the other Brokers)

Update on Monday, February 20, 2012 at 1:30PM by Contrarian Investor UK
Numis note assumed 116 mm barrels would come after extended well test. Also with no 116 mm barrels, funding would be a problem. Richard Smith has strongly implied in the press last week that debt funding was not far away for phase 1b.

Not little sell off just like Friday lunctime to 145p to catch the stop losses and panic small investors. Don't let the institutions take these off you too cheaply!

Back in at 138p kept profit and more shares......lovely.,.

Looks like the rig departs on Saturday if weather holds.

Are they adding a crew?

grevis2,there will be crew but not full crew.

Looks like a little life is the SP today,if it departs on Saturday we should see a steady rise.

Markymar: The hot money seems to be moving in here this morning.

Its moving quick if your going to have a bite.

Thanks! Have topped up ths morning.

why the excitement?

Does not take much at my age cynic even less for RF, he is in and out the hole time.Bought a few this morning will carry on holding them as we may get news on monday of rig on the move.

FOX Daviews Views from the Trading Floor - 23rd February 2012

Against the backdrop of a shaky market, Xcite Energy (LON:XEL) were in fine form once again, pushing another 7% higher to 141p. Holders here are waiting for an update regarding the rig, and they seem to be happy to back the story down at these levels. The 120p to 140p levels have proven to be decent lines of support over the last year or so, and the 200p level has been a stubborn resistance to break recently.

Not a word about the continued ( and possibly continuing) overhang from the fund raising?

sincerely hope you are therefore short of these

Steady buying this morning,ticking up.....on the move

Comment from IC:
----------------------------
COMPANIES TO WATCH
The benefits of EOR and CCS are likely to take many years to realise, but some North Sea operators are looking for much faster returns:

Xcite Energy (XEL)

Xcite is appraising and developing the 100 per cent-owned Bentley heavy oil field, one of the largest undeveloped heavy oil fields in the UK. The proven and probable (2P) reserves in the core area of the field have been independently upgraded to a substantial 116m barrels, with a post-tax net present value of $1.464bn (£0.9bn). Applying the latest horizontal drilling technology allowed Xcite to achieve a stabilised flow rate of 2,900 barrels per day, well above the threshold needed for commerciality. The next phase of drilling is starting soon and will test the extent to which water can maintain reservoir pressure, and therefore how much oil can be produced from the field. Significantly, production from this 'extended well test' will also provide Xcite's first production, which the company will use to secure finance and governmental approval for the second phase of development. Xcite is also evaluating the potential to use enhanced oil recovery techniques on the Bentley field.

Rig move Sunday confirmed

Subject: Planned Large Vessel Movement Sunday 26th February 2012
Please be advised that the River Tay Navigation Channels will be closed [outwith planned movements] to allow safe navigation of a Large Vessel Movement of the departing Jack-up Rig ROWAN NORWAY on SUNDAY 26th FEBRUARY 2012 from 11:30 hrs until 19:30hrs from the PRINCE CHARLES WHARF to the Fairway Buoy with 5 tugs.
All vessels are requested and required to keep well clear (minimum 200 metres) and must not impede or endanger the planned passage.
Note - this operation will be subject to the prevailing weather conditions

nice one grevis...:))

Well the tugs haven't gone out on the morning tide and high tide pm is 17:24 and they're still in harbour.,.

no go today now. I bet they will not risk moving a thing that size in the dark.
Someone said they will have to see 2 nautical miles, would not think so in the dark.
Better not hit the sp. :-))

Update on Sunday, February 26, 2012 at 4:48PM by Contrarian Investor UK
Tugs back at berth. Talk of cancellation today due to insurance risk. High tide is 5.30 so awaiting confirmation. Next high tide tomorrow night at 6pm or 6.23 am on Tuesday. Weather looks breezy all week.

Tugs still in port.,.